Full year 2025 net loss of $527 million, compared to net income of $116 million in 2024, driven by the expense associated with terminating the Indemnification Agreement; record high full year 2025 Adjusted EBITDA(1) of $833 million, up 20% year-over-year and above the high-end of outlook range
Fourth quarter net revenue of $1.895 billion, up 2% year-over-year and above the high-end of outlook range; on an organic basis, P&S up 5% and ADI down 1%
Total company fourth quarter gross margin of 29.6%, up 110 basis points year-over-year; year-over-year margin expansion achieved at both P&S (eleven consecutive quarters) and at ADI (seven consecutive quarters)
Fourth quarter net income of $136 million, compared to net income of $23 million in the fourth quarter of 2024; Adjusted EBITDA(1) of $226 million, up 21% year-over-year, and above the high-end of outlook range
SCOTTSDALE, Ariz., Feb. 24, 2026 /PRNewswire/ -- Resideo Technologies, Inc. (NYSE:REZI), a leading global manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets, today announced financial results for the full year and fourth quarter ended December 31, 2025.
Fourth Quarter 2025 Financial Highlights
Net revenue of $1,895 million, up 2% compared to $1,858 million in fourth quarter 2024; net revenue was above the high end of outlook range
Total company gross margin of 29.6%, up 110 basis points year-over-year
Net income of $136 million, compared to net income of $23 million in fourth quarter 2024
Adjusted EBITDA(1) of $226 million, up 21% compared to $187 million in fourth quarter 2024; Adjusted EBITDA(1) was above the high end of outlook range
Diluted EPS of $0.73 and Adjusted EPS(1) of $0.50 compared to diluted EPS of $0.08 and Adjusted EPS(1) of $0.59 for the fourth quarter 2024; fourth quarter 2025 Adjusted EPS(1) was at the high end of outlook range
Reported cash provided by operating activities of $299 million
Full Year 2025 Financial Highlights
Record high net revenue of $7,472 million, up 11% compared to $6,761 million in 2024; net revenue was above the high end of outlook range
Total company gross margin of 29.4%, up 130 basis points year-over-year
On a GAAP basis, net loss of $527 million, compared to $116 million net income in 2024, driven by the expense associated with terminating the Indemnification Agreement. Record high adjusted net income(1) of $409 million, up 20% compared to $341 million in 2024
Record high Adjusted EBITDA(1) of $833 million, up 20% compared to $693 million in 2024; Adjusted EBITDA(1) was above the high end of outlook range
Diluted loss per share of $3.77 and record high Adjusted EPS(1) of $2.68 compared to diluted EPS of $0.61 and Adjusted EPS(1) of $2.29 in 2024; Adjusted EPS(1) was above the high end of outlook range
Cash used in operating activities of $1,137 million, and adjusted cash provided by operating activities(1) of $453 million after excluding the one-time $1,590 million payment made to Honeywell to terminate the Indemnification Agreement; Adjusted cash provided by operating activities(1) was above the high end of outlook range
(1)
This press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934. Resideo management believes the use of such non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, and Adjusted Cash Provided by Operations, assists investors in understanding the ongoing operating performance of Resideo by presenting the financial results between periods on a more comparable basis. See reconciliations of U.S. GAAP results to adjusted results in the accompanying tables.
Management Remarks"In the fourth quarter, Resideo delivered strong results that either exceeded or were at the high end of our outlook range. In 2025, Resideo exceeded the high-end of our outlook range for all of our key financial metrics and achieved record highs in net revenue, Adjusted EBITDA and Adjusted EPS," said Jay Geldmacher, Resideo's President and CEO.
"The Products and Solutions and ADI teams delivered outstanding results in 2025 by demonstrating resilience and operational excellence throughout a very dynamic year. These are part of our core values that will drive future standalone success for each company post business separation."
Products and Solutions Fourth Quarter 2025 Highlights
Net revenue of $712 million, up 6% compared to 2024
Fourth quarter gross margin of 41.0%, up 20 basis points compared to 2024
Income from operations of $137 million, compared to $133 million in 2024
Adjusted EBITDA(1) of $166 million, or 23.3% of revenue, compared to $157 million, or 23.5% of revenue in 2024
P&S delivered net revenue of $712 million in the fourth quarter 2025, up 6% compared to fourth quarter 2024 and includes an approximate 1% favorable impact from foreign currency. Revenue grew year-over-year across many of our product families and sales channels, which more than offset performance of our Air products that were impacted by a soft but improving residential HVAC market. Revenue was driven by a combination of price realization, primarily in our OEM channel, and by customer demand for our new products, primarily in our electrical distribution and retail channels.
Fourth quarter 2025 gross margin was 41.0%, compared to 40.8% in fourth quarter 2024, largely due to continued achievement of manufacturing efficiencies. Selling, general and administrative expenses were down $1 million and research and development expenses increased $11 million compared to fourth quarter 2024 due to investments in projects that are intended to drive future growth. Cost discipline continued to be strong throughout 2025, and, combined with the gross margin expansion, helped drive fourth quarter 2025 operating profit of $137 million up from $133 million in fourth quarter 2024. Fourth quarter Adjusted EBITDA(1) grew 6% year-over-year in 2025 to $166 million.
ADI Global Distribution Fourth Quarter 2025 Highlights
Net revenue of $1,183 million down 1% when compared to 2024
Gross margin of 22.7%, up 110 basis points compared to 2024
Income from operations of $51 million, compared to $48 million in 2024
Adjusted EBITDA(1) of $88 million, or 7.4% of revenue, compared to $91 million or 7.7% of revenue in 2024
ADI fourth quarter 2025 net revenue of $1,183 million was down 1% driven primarily by a decline in the video surveillance product category that was partially offset by growth in multiple commercial security and professional audio-visual product categories. E-commerce revenue grew 3% year-over-year, driven primarily by greater customer adoption. Exclusive Brands revenue also grew 2% year-over-year driven by positive momentum for our new products.
Gross margin was 22.7%, up 110 basis points compared to fourth quarter 2024. The increase was primarily driven by favorable price and mix. Selling, general and administrative and research and development expenses were $190 million in 2025, up $4 million compared to fourth quarter 2024 due to investments in projects that are intended to drive future growth and higher selling, general and administrative expenses. Income from operations of $51 million in fourth quarter 2025 increased 6% from $48 million in fourth quarter 2024. Adjusted EBITDA(1) decreased to $88 million in fourth quarter 2025 from $91 million in fourth quarter 2024.
Cash Flow and Liquidity
Net cash provided by operating activities was $299 million in fourth quarter 2025 compared to cash provided by operating activities of $203 million in fourth quarter 2024. The increase was primarily driven by strong cash collections, the timing of payments, and the benefit associated with terminating the Indemnification Agreement.
Net cash used by operating activities was $1,137 million in 2025 compared to cash provided by operating activities of $444 million in the prior year. The change was primarily driven by the one-time $1,590 million payment made to Honeywell to terminate the Indemnification Agreement. Adjusted cash provided by operating activities(1) was $453 million after excluding the impact of the termination payment made to Honeywell. At December 31, 2025, Resideo had cash and cash equivalents of $661 million and total outstanding debt of $3.23 billion.
Outlook
The following table summarizes the Company's current first quarter 2026 and full year 2026 outlook.
($ in millions, except per share data)
Q1 2026
2026
Net revenue
$1,866 - $1,890
$7,800 - $7,900
Non-GAAP Adjusted EBITDA(1)
$193 - $207
$935 - $985
Non-GAAP Adjusted Earnings Per Share(1)
$0.58 - $0.62
$3.00 - $3.20
Conference Call and Webcast Details
Resideo will hold a conference call with investors on February 24, 2026, at 5:00 p.m. ET. The webcast can be accessed at https://investor.resideo.com, where the webcast link and related materials will be posted before the call. A replay of the webcast will be available following the presentation.
About Resideo
Resideo is a leading manufacturer, developer, and distributor of technology-driven sensing and controls products and solutions for residential and commercial end-markets. We are a leader in the home heating, ventilation, and air conditioning controls markets, smoke and carbon monoxide detection home safety and fire suppression products markets, and security products markets. Our solutions and services can be found in over 150 million residential and commercial spaces globally, with tens of millions of new devices sold annually. For more information about Resideo and our trusted, well-established brands including First Alert, Honeywell Home, BRK, Control4, and others, visit www.resideo.com.
Contacts:
Investors:
Media:
Christopher T. Lee
Garrett Terry
Global Head of Investor Relations
Corporate Communications Manager
[email protected]
[email protected]
Forward-Looking Statements This release and the related conference call contain "forward-looking statements." All statements, other than statements of fact, that address activities, events or developments that we or our management intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks and uncertainties, which may cause the actual results or performance of the Company to differ materially from such forward-looking statements. Such risks and uncertainties include, but are not limited to, (1) our ability to achieve our outlook regarding the first quarter 2026 and full year 2026, (2) our ability to recognize the expected savings from, and the timing and impact of, our existing and anticipated cost reduction actions, and our ability to optimize our portfolio and operational footprint, (3) the amount of our obligations and nature of our contractual restrictions pursuant to, and disputes that have or may hereafter arise under the agreements we entered into with Honeywell in connection with our spin-off, (4) risks related to our recently completed acquisitions, including Snap One, and our ability to achieve the targeted amount of annual cost synergies and successfully integrate the acquired operations (including successfully driving category growth in connected offerings), (5) the ability of Resideo to drive increased customer value and financial returns and enhance strategic and operational capabilities, (6) risks and uncertainties relating to tariffs that have been or may be imposed by the United States and other governments, (7) risks related to our anticipated separation of Resideo Technologies' Products & Solutions and ADI Global Distribution businesses into two independent publicly traded companies, including the timing thereof and that we may experience operational or other disruptions as a result of the separation and the planning therefor, and (8) the other risks described under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in our Annual Report on Form 10-K for the year ended December 31, 2025 and other periodic filings we make from time to time with the Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and actual results, developments, and business decisions may differ from those envisaged by our forward-looking statements. Except as required by law, we undertake no obligation to update such statements to reflect events or circumstances arising after the date of this press release and we caution investors not to place undue reliance on any such forward looking statements.
Use of Non-GAAP MeasuresThis press release includes certain "non-GAAP financial measures" as defined under the Securities Exchange Act of 1934 and in accordance with Regulation G thereunder. Management believes the use of such non-GAAP financial measures assists investors in understanding the ongoing operating performance of the Company by presenting financial results between periods on a more comparable basis. Such non-GAAP financial measures should not be construed as an alternative to reported results determined in accordance with U.S. GAAP. Readers should also consider the limitations associated with these non-GAAP financial measures, including the potential lack of comparability of these measures from one company to another.
We have included reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and provided in accordance with U.S. GAAP at the end of this release. A reconciliation of the forecasted range for Adjusted EBITDA and Adjusted Earnings Per Share for the first quarter of 2026 and for the fiscal period ending December 31, 2026 are not included in this release due to the number of variables in the projected range and because we are currently unable to quantify accurately without unreasonable efforts certain amounts that would be required to be included in the U.S. GAAP measure or the individual adjustments for such reconciliation. In addition, we believe such reconciliation would imply a degree of precision that would be confusing or misleading to investors. However, for the first quarter of 2026 and full year 2026 respectively, we anticipate the following expenses in our GAAP to non-GAAP reconciliation: depreciation and amortization of $53 million and $216 million, interest expense, net of $47 million and $175 million, and stock-based compensation expense of $14 million and $57 million.
Table 1: SUMMARY OF FINANCIAL RESULTS (UNAUDITED)
Q4 2025
Full Year 2025
(in millions)
Products and Solutions
ADI Global Distribution
Corporate
Total Company
Products and Solutions
ADI Global Distribution
Corporate
Total Company
Net revenue
$ 712
$ 1,183
$ ,
$ 1,895
$ 2,688
$ 4,784
$ ,
$ 7,472
Cost of goods sold
420
915
—
1,335
1,557
3,719
—
5,276
Gross profit
292
268
—
560
1,131
1,065
—
2,196
Research and development expenses
36
11
—
47
128
39
—
167
Selling, general and administrative expenses
108
179
34
321
417
712
137
1,266
Intangible asset amortization
7
24
—
31
26
94
2
122
Restructuring, impairment and extinguishment costs
4
3
—
7
5
8
3
16
Business separation costs
—
—
14
14
—
—
18
18
Income (loss) from operations
$ 137
$ 51
$ (48)
$ 140
$ 555
$ 212
$ (160)
$ 607
Q4 2024
Full Year 2024
(in millions)
Products and Solutions
ADI Global Distribution
Corporate
Total Company
Products and Solutions
ADI Global Distribution
Corporate
Total Company
Net revenue
$ 669
$ 1,189
$ ,
$ 1,858
$ 2,564
$ 4,197
$ ,
$ 6,761
Cost of goods sold
396
932
—
1,328
1,514
3,346
—
4,860
Gross profit
273
257
—
530
1,050
851
—
1,901
Research and development expenses
25
17
—
42
94
17
—
111
Selling, general and administrative expenses
109
169
32
310
416
566
156
1,138
Intangible asset amortization
5
23
1
29
23
54
3
80
Restructuring, impairment and extinguishment costs
1
—
4
5
14
19
19
52
Income (loss) from operations
$ 133
$ 48
$ (37)
$ 144
$ 503
$ 195
$ (178)
$ 520
Q4 2025 % change compared with prior period
Full Year 2025 % change compared with prior period
Products and Solutions
ADI Global Distribution
Corporate
Total Company
Products and Solutions
ADI Global Distribution
Corporate
